EDay News

EDay Life Signs Strategic Alliance with Chinese Supplier

EDay Life Ltd (ASSOB: EDY) is pleased to announce the signing of a Memorandum of Understanding with a substantial Chinese supplier to work together to develop a range of battery powered electric vehicles for EDay in Australia. EDay’s partner is the largest independent automotive designer and specialist Original Design Manufacturer (ODM) in China and offers a turnkey service from design to manufacture to the supply of completed EDay vehicles. The companies will co-develop and import into Australia a range of cars designed and manufactured in China, with input from EDay.

This alliance represents a significant milestone for EDay Life in terms of having a supply partner that wholly embraces the EDay business model and can cater to our core strategies, namely:

Ownership of our brand and our intellectual property

Establishment and maintenance of key environmental values

Enabling EDay to drive innovation and encourage the adoption of Australian content

Offering three power options – electric, LPG and petrol engines.

The alliance with our Chinese partner has the following benefits for EDay:

EDay will be the brand name and is owned by EDay Life Ltd

The partnership will facilitate the shortest time to market, in terms of product development

The partnership will enable the lowest possible investment by EDay

Improved return on investment for EDay

An extensive range of vehicles will be made available to the Australian market over the next few years

Component sourcing assistance, including the introduction and support for Australian component suppliers will be available

Higher sales volumes.

Our Chinese PartnerOur Chinese partner has the following corporate profile:

The Company has a current investment of over $200 million (1.220 billion RMB)

They developed over one third of the domestic vehicles currently available on the market in China

Over 800 employees including 230 engineers and 170 technicians

The Company understands how to cater for the complexities of safety compliance and ANCAP ratings and has already delivered compliant cars to the international market.

Export & Growth OpportunitiesAs the owners of the brand, EDay will be able to sell products into international markets, initially focusing on the Asia Pacific region in right hand drive countries.

In commenting on the strategic alliance, Robert Lane, Managing Director of EDay Life said:

This relationship is a 'game changer' for EDay Life. The alliance will allow us to have input into the vehicles we order and allow us to develop our own brand not just in terms of core values, value for money and innovative attributes, but also the look and feel of the cars.

It also allows us to establish the brand in Australia and then expand to other countries and introduce the EDay attributes to new markets, encouraged and supported by our strategic partner through this technical alliance.

This relationship, with one of the fastest growing and capable suppliers in China will provide several opportunities for growth as we develop new products and new markets.

We have already had a great deal of interest from many companies from countries around the world who have similar ambitions but without the product supply we have. They wish to become distributors for the EDay brand in their markets.